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Saturday, May 30, 2020

Gold hits record high on rush to safe haven assets

On MCX, the gold June futures traded at Rs 47,860 per 10 grams, up Rs 479 or 1.01 per cent, Silver July futures were at Rs 1,580 or 3.38 per cent higher at Rs 48,298 per kg.

By: ENS Economic Bureau | Mumbai | Published: May 19, 2020 3:00:18 am
covid-19 effect, corona crisis, gold prices, gold prices today, gold prices rising, rupee vs dollar, rupee rate, indian express In the international market, gold was trading above its 7 year high level of 60. (File photo)

Gold prices hit a record high for the second day in a row, tracking price movements in the international market. Gold prices have risen 24.45 per cent to Rs 47,929 per 10 grams from its March low of Rs 38,500 amid worries over the escalating US-China trade tensions and the impact of coronavirus pandemic on the economy.

On MCX, the gold June futures traded at Rs 47,860 per 10 grams, up Rs 479 or 1.01 per cent, Silver July futures were at Rs 1,580 or 3.38 per cent higher at Rs 48,298 per kg. Silver prices have gained around 44 per cent from its March low of Rs 33,580 per kg. Gold is set to cross the Rs 50,000 mark in the coming weeks, analysts said.

“The rally in gold prices is primarily due to uncertainty in Indian as well as the global market due to Covid-19 and escalating tensions between US and China which could lead to further trade tariffs. Reports of further stimulus by the US on the back of economic issues are also one of the reasons for the spike in gold prices,” said Nish Bhatt, Founder & CEO, Millwood Kane International. Traditionally, while gold is seen as a hedge against inflation, lack of return from other asset classes has pushed investments in favour of the yellow metal.

In the international market, gold was trading above its 7 year high level of $1760.

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